Extended Stay America (STAY) Tops Q1 EPS by 1c, Revenues Beat

Extended Stay America (NASDAQ: STAY) reported Q1 EPS of $0.07, $0.01 better than the analyst estimate of $0.06. Revenue for the quarter came in at $266.3 million versus the consensus estimate of $254.67 million.

First Quarter 2020 Highlights

• Net income of $7.8 million
• Total revenues of $266.3 million
• Comparable system-wide Revenue Per Available Room (“RevPAR”) declined 5.8% to $43.98
• Adjusted EBITDA1 of $97.7 million
• Adjusted Funds From Operations (“Adjusted FFO”)1 of $0.31 per diluted Paired Share
• Adjusted Paired Share Income1 of $0.07 per diluted Paired Share
• Comparable system-wide RevPAR index of 107, a 12% increase compared to the first quarter of 2019, with a RevPAR index of 122 in March 2020, a 32% increase compared to March 2019

Extended Stay America’s President and Chief Executive Officer Bruce Haase, commented, “I am proud of our Company’s performance during this period of pandemic and economic uncertainty. Thanks to the hard work of our nearly 8,000 employees and our franchisee partners every single Extended Stay America hotel has remained open through the pandemic, we have maintained relatively healthy overall occupancy levels, and we have not been forced to enact any wide-spread furloughs or staff reductions as seen by others in the industry. Our property teams have done a remarkable job keeping their colleagues and our guests safe while continuing to provide an essential service for their communities and I’d like to thank them for all their hard work.”

Mr. Haase continued, “March and April saw the highest RevPAR Index scores for STAY in the Company’s history by a wide margin. We believe that our positive RevPAR performance relative to the industry during this difficult time period demonstrates the resiliency of our extended stay business model and the unique characteristics of our business compared to traditional transient lodging brands. We are also pleased to see improved RevPAR and occupancy trends during the last few weeks compared to earlier in the nationwide response to the virus. We believe the Company is in a strong financial position to navigate through this crisis and well positioned as the economy reopens.”

For earnings history and earnings-related data on Extended Stay America (STAY) click here.

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